Amazon said Wednesday it will eliminate approximately 16,000 roles across the company as part of an organizational overhaul aimed at reducing management layers, increasing ownership, and cutting bureaucracy, while continuing to invest heavily in areas such as artificial intelligence.
In a message to employees, Beth Galetti, Amazon’s senior vice president of people experience and technology, said the cuts affect teams still finalizing restructuring efforts first announced in October. Most U.S.-based employees whose positions are eliminated will be given 90 days to seek other roles internally. Those who do not transition will receive severance pay and additional support.
Galetti said the move is not intended to signal a recurring cycle of mass layoffs and stressed that Amazon will continue hiring in strategic areas.
“We’re still in the early stages of building every one of our businesses and there’s significant opportunity ahead,” she told staff, adding that teams will continue to reassess ownership, speed and capacity to innovate as market conditions evolve.
The announcement follows Amazon’s recent plans to expand its grocery operations, including broader same-day delivery of fresh food in 2026 and the opening of more than 100 new stores over the next few years. At the same time, the company said it will close Amazon Go and Amazon Fresh physical stores, converting some locations into Whole Foods Market outlets while investing further in faster delivery options.
Amazon founder Jeff Bezos, who stepped down as CEO in 2021, has also intensified his focus on artificial intelligence outside the company. Reports indicate he is deeply involved in a new AI startup known as Project Prometheus, which launched with roughly $6.2 billion in funding, placing it among the most heavily financed ventures in the rapidly expanding AI sector.
Amazon’s restructuring comes as major tech firms including OpenAI, Microsoft, Meta and Google parent Alphabet accelerate investments and roll out new AI initiatives amid growing competition.
